Global oil prices climbed sharply on Wednesday after renewed tensions between the United States and Iran reignited concerns over crude supplies from the Gulf, with fears growing that disruptions to shipping through the Strait of Hormuz could tighten the global energy market.
Brent crude rose by more than seven per cent to trade above $80 per barrel, while U.S. West Texas Intermediate (WTI) crude also posted strong gains, reaching its highest level in more than two weeks.
The market rally followed comments by U.S. President Donald Trump, who declared that the interim agreement reached with Iran to halt hostilities had effectively collapsed, while signalling the possibility of additional military action against Tehran.
Iranian state media responded by warning that any fresh attacks on the country could prompt the closure of the Strait of Hormuz, a critical maritime route through which roughly one-fifth of global oil supplies normally pass.
The renewed uncertainty has heightened concerns across global energy markets, particularly after reports that several commercial vessels either delayed or abandoned planned transits through the strategic waterway because of security risks.
Analysts said the latest developments have reversed the optimism that followed last month’s ceasefire, when oil prices retreated after expectations grew that Gulf energy exports would gradually return to normal.
Market observers noted that renewed geopolitical tensions have once again shifted attention from supply recovery to the possibility of another prolonged disruption in one of the world’s most important oil transit corridors.
Concerns have also intensified following Trump’s renewed warnings about Iran’s oil export infrastructure, including references to the country’s Kharg Island terminal, which handles the vast majority of Iranian crude exports.
Despite his hardline rhetoric, the U.S. president indicated that diplomatic contacts with Iran had not been completely abandoned, although he questioned the prospects of meaningful progress through negotiations.
Energy analysts say the latest escalation has significantly weakened confidence that the current truce can evolve into a lasting peace agreement, increasing the risk of further volatility in global crude markets.
Shipping activity in the Gulf has also come under renewed pressure, with tracking data indicating that multiple oil and gas tankers altered their routes or suspended planned movements through the Strait of Hormuz amid growing security concerns.
The latest spike in prices comes after crude had fallen back to pre-conflict levels following the ceasefire, prompting many traders to increase bets on further price declines before the latest escalation reversed market sentiment.
Investment bank HSBC has revised its outlook for crude prices, lowering its average Brent forecast for 2026 to $80 per barrel, citing expectations that Gulf oil exports could gradually normalize later in the year if tensions ease.
Meanwhile, reports from Asia indicated that China has relaxed restrictions on refined fuel exports and authorized additional shipments by some domestic refiners, a move expected to improve fuel availability in regional markets despite ongoing geopolitical uncertainty.
Energy traders will continue to monitor developments in the Gulf closely, as any further disruption to shipping through the Strait of Hormuz could have significant implications for global oil supply, inflation and economic growth.
